discuss Counter or no-counter on an opening offer?

[Soofi]

After over almost 2 decades in this industry, at times, I still fail to understand the endusers/buyers during negotiations and lose quite a few sales to the counter-strategy.

My question at hand is; Should we really counter to an opening offer or accept as it? What do most of you do?

So to build this discussion up and see what others have to say or suggest about this, recap on why I am interested to know what most of you do is because of this below mentioned situation/story:

Sold: FullertonLawFirm,com
Sale Price: $520
Venue: DAN
Listing type: Make Offer with Buy Now Price.
Sale type: Inbound

Registered for $5.49 at Epik from the daily drops list I prepare. Domain was held for 14 days.

Accepted an opening offer of $520 which came in this midnight/early morning (IST) via Dan where it was listed as make offer (minimum $500 which is my extreme lowest and minimum acceptable price) with buy now price of $1488.

I woke up a few moments ago, looked at the offer and sat thinking should I counter or accept this opening offer on a 2 week old domain name? You must be wondering why in the world was I thinking and should have countered for-sure since its an opening offer and my quick research also suggested the same, that it seems like a serious and genuine buyer who is operating on a+mydomain.com so he/she would be happy to have my asset for negotiated high $xxx to low $1xxx price point.

But let me share with you why I didn't counter, and I will literally think dozens of times before countering in the near future as well, at least to my daily drops hand-registered domain names, especially on DAN platform. This is because I have lost over 8 potential sales of similar names to a counter-strategy last month where buyer lost interest or disappeared. And guess what, my countered price was only mere $xxx price higher than their initial offer in most cases.

Oh and I think this is quite a fair price for 3 keyword domain name. Though I suck at negotiations, thoughts and suggestions here or through pm are genuinely welcome.

 

[Bob Hawkes]

This is a really valuable thread that I just stumbled on. Thanks for great views and contributions everyone.

I see some virtue in always countering to an offer, even if it is not that much above offer.

I guess the other thing that I would emphasize is the importance for each domain BEFORE you get an offer and have to decide determine in your best opinion each of these prices.

1. Your best estimate of fair market value for the domain name based on such things as prior sales, importance of term, advertiser stats, etc.
2. The price that you would be totally happy with.
3. The lowest price that you can see accepting and still feel you did OK with the domain name. This probably is based on many factors, including your costs and holding time, what similar names have sold for, how many potential users you see, etc.

If the price first offered is above the 1 and 2 price, then possibly accept without counter. If it is below 3, then absolutely don't even consider accepting without counter.

Bob

 

[Jurgen Wolf]

Most buyers start at least 3 times below their actual budget.

 

[Soofi]

Overall, I don't care what they offer...
I always keep in mind my own appraisal... and if the buyer's Best Offer is suitable for me - I sell...
In other case: Bye... Next buyer please...

Yeah thats how it should be in most cases as well.

As discussed earlier, most of this also depends on your current financial situation, with the domain names.

 

[4better]

Depending on the domain, most of the time I make a counter offer. End result: 60-70% buyers walk away, 30-40% nice deal.

 

[Skyvisum]

Its on reported domain sales page,I think i got paid $1508 after 20%.Afternic.April 2018.

 

[Sumeeth]

Yeah have had the exact same experience on highly priced domain names, and thats what makes me think a lot of times on whether what is the right price to accept for a domain name.

I have a popular app domain name in .com where I received a $1000, $5000, $10,000, $20,000 & $25,000 after negotiations but I was hell bent on $75,000 reduced to $51,000 and sale didnt happen. When I went back to accept $25,000, buyer simply declined and lost interest!

Every act of us seems a lesson to us. Even not sure, if these lessons teaches something to us? because each client's budget and mindset is different, we don't know the client's mindset, budget etc., It is impossible to say which is correct? counter offer/accept current offer? only thing we do is how this sale is important to us.. based on we can take the risk of either counter or accept current offer when we don't know about client details

 

[karmaco]

I start the minimum offer at a price I can accept on some names to eliminate low ballers and frustration on names I consider worth holding.

I only accept the minimum offer if I don’t care about the domain or was on the fence about keeping.

On Dan, there are many domainers looking for a massive deal thereby the backing off if a counter is sent. I guess all you have to decide is what you are willing to accept for that individual domain. If the minimum set is the lowest you would accept that will save a lot of time and frustration.

 

[DnFolk]

I would like to try Efty and its marketplace. What do you suggest? Reviews?

Efty is good but facing spam or non responsive buyers is also not uncommon there, besides handling everything by myself felt like a task and not smooth as i expected if you are ok with it then go for it, i am myself planning to try epik in near future.

 

[Soofi]

It depends on whether I'm good with the amount I'm being offered.
Sometimes I accept the initial offer, and sometimes I negotiate because I wouldn't accept the initial offer, as it is too low imo.

So in short, completely depends on the name and price offered!

 

[Domainuu]

https://negotiationsworkshops.com/n...hy-You-Should-Never-Take-the-First-Offer.html

Must Read Article- by Roger Dawson

 

[Jurgen Wolf]

Initial offer must be also realistic.

 

[winst]

I've had an offer started at $500, but I countered $30k. We negotiated and the domain name was sold for $20k. It was above buyer's budget but the buyer was able to get additional funding after I refused to go below 20k.

In another negotiation, we eventually agreed to $7k, the "CEO" tried to get the funding but denied by the board. I still have the domain name, but I will not sell it for less than 20k today.

Counter/not counter really depends on the quality and types of the domain name. Most of my names are brandables and generic terms, and I will only sell for a specific price range.

I'd say you should always counter, unless you don't have time to negotiate. Every serious buyer have room for negotiation, will likely have some room, or they will wonder if the first offer was too high to begin with. If you worry about buyer walks away for mere $xxx, the buyer might not be serious in the first place, or was never authorized to make the offer anyway.

 

[Soofi]

If it is at least 3x the cost of the name, I purchase it

I like your approach, though, would you mind sharing sharing on how do you get to 3x value of acquisition cost?

Just to put numbers in place, if the domain costed you $10, you would list it at $30 minimum and higher bin price?

 

[Soofi]

I am old school...I look at cpc, visits, extensions taken, instinct etc. Yes, if not 3x or more at a minimum, to me, it is not worth tying up the money.

makes sense, as I look at quite a few of those figures while jumping on a domain name. Its been working!

 

[Skyvisum]

Yeah have had the exact same experience on highly priced domain names, and thats what makes me think a lot of times on whether what is the right price to accept for a domain name.

I have a popular app domain name in .com where I received a $1000, $5000, $10,000, $20,000 & $25,000 after negotiations but I was hell bent on $75,000 reduced to $51,000 and sale didnt happen. When I went back to accept $25,000, buyer simply declined and lost interest!

If name sounds good with the app just set your bin and leave it,so no room to negotiate as price is already set.

 

[Skyvisum]

Some names i have countered even $5k.I countered because I know they can pay more and dont forget they disguise their email.Some I can detect they are purchasing the name for themselves or small business and i counter reasonably but I wont accept first offer.When i started as a newbie,yes i wanted sales just to feel good on $400 and $600 sales but as I gained experience,i developed a thick skin by learning to counter and say no to some stories some buyers tell me.

Client has low budget.I can read between the lines .I learn also from reading closed sales from experienced domainers also because those 5 and 6 figures takes a lot of guts.When i get a first offer,i whisper"counter or tell them its too low .

 

[Soofi]

Every act of us seems a lesson to us. Even not sure, if these lessons teaches something to us? because each client's budget and mindset is different, we don't know the client's mindset, budget etc., It is impossible to say which is correct? counter offer/accept current offer? only thing we do is how this sale is important to us.. based on we can take the risk of either counter or accept current offer when we don't know about client details

You are on point Sumeeth!

Each and every domain name or its sale is different from the previous or future one. Different situations, scenes and negotiations.

We have to be alert at that point in time while doing our best research!

 

[Soofi]

I always counter no matter what the domain, buyer, situation is.

That's how and why you crack 5-6 figures more often, Abdul bhai

 

[Skyvisum]

I would like to try Efty and its marketplace. What do you suggest? Reviews?

Try it.I use efty and get all leads to me than waiting for dan to show their ego and feel like i shouldnt get my leads even if i am helping them by driving traffic and changing nameservers and they get their 9%.I am switching most of the nameservers I previously direct to dan to bodis and others to efty where i like to negotiate on other names.Love saving on commission charges.

 

[YairDD]

It depends on whether I'm good with the amount I'm being offered.
Sometimes I accept the initial offer, and sometimes I negotiate because I wouldn't accept the initial offer, as it is too low imo.

 

[Jurgen Wolf]

Result also depends on what you say to your bidders... how you comment your conter offers...

 

[Soofi]

I will try @Epik.com in upcoming days.

@Rob Monster can help you Vicky!

 

[Soofi]

Try it.I use efty and get all leads to me than waiting for dan to show their ego and feel like i shouldnt get my leads even if i am helping them by driving traffic and changing nameservers and they get their 9%.I am switching most of the nameservers I previously direct to dan to bodis and others to efty where i like to negotiate on other names.Love saving on commission charges.

I shall keep you all posted about my Efty experience, f at all I get a chance to try it out in next few months.

 

[Jurgen Wolf]

Another example from my past experience...
Was mid $xxx opening bid for my local ccTLD .com.ua
After negotiations - it was sold for $4.5K

 

[Jurgen Wolf]

I just rejected this mid $xxx bid...
And then negotiations started in 4F range...